Oklahoma § 17-520 - Security for location damages - Filing - Entry upon

§ 17-520. Security for location damages - Filing - Entry upon

property - Increase in security.

A. Every operator doing business in this state shall file a

corporate surety bond, letter of credit from a banking institution,

cash, or a certificate of deposit with the Secretary of State in the

sum of Twenty-five Thousand Dollars ($25,000.00) conditioned upon

compliance with Sections 20 through 26 of this act for payment of

any location damages due which the operator cannot otherwise pay.

The Secretary of State shall hold such corporate surety bond, letter

of credit from a banking institution, cash or certificate of deposit

for the benefit of the surface owners of this state and shall ensure

that such security is in a form readily payable to a surface owner

Oklahoma Statutes - Title 17. Corporation Commission

awarded damages in an action brought pursuant to Sections 20 through

26 of this act. Each corporate surety bond, letter of credit, cash,

or certificate of deposit filed with the Secretary of State shall be

accompanied by a filing fee of Ten Dollars ($10.00).

B. The bonding company or banking institution shall file, for

such fee as is provided for by law, a certificate that said bond or

letter of credit is in effect or has been canceled, or that a claim

has been made against it in the office of the court clerk in each

county in which the operator is drilling or planning to drill. Said

bond or letter of credit must remain in full force and effect as

long as the operator continues drilling operations in this state.

Each such filing shall be accompanied by a filing fee of Ten Dollars

($10.00).

C. Upon deposit of the bond, letter of credit, cash or

certificate of deposit, the operator shall be permitted entry upon

the property and shall be permitted to commence drilling of a well

in accordance with the terms and conditions of any lease or other

existing contractual or lawful right.

D. If the damages agreed to by the parties or awarded by the

court are greater than the bond, letter of credit, cash or

certificate of deposit posted, the operator shall pay the damages

immediately or post an additional bond, letter of credit, cash or

certificate of deposit sufficient to cover the damages. Said

increase in bond, letter of credit, cash or certificate of deposit

shall comply with the requirements of this section.

Added by Laws 1990, c. 255, § 21, eff. Sept. 1, 1990.